Medicare’s home health benefit has been a financial lifeline for millions of Americans, letting them receive skilled nursing care, physical therapy, and other medical services right in their living rooms instead of expensive hospital beds.
But proposed cuts to this crucial program could soon leave seniors scrambling to cover thousands in unexpected medical bills, Former Michigan Senator Debbie Stabenow recently argued in Forbes.
The Centers for Medicare and Medicaid Services (CMS) recently announced plans to slash home health care payments by 6.4% in 2026, which translates to about $1.13 billion less funding for the program. That’s on top of nearly 9% in cuts already hitting providers since 2023.
For the 66.7 million Americans covered by Medicare, these aren’t just numbers on a government spreadsheet. They’re real dollars that could vanish from family budgets.
The hidden costs coming your way
Medicare’s home health benefit currently covers skilled nursing visits, physical therapy after surgery, occupational therapy for managing daily activities, speech therapy, and medical social services.
All these services are available in-home, which can help patients save on high costs of hospital stays or nursing facilities.
When these services face funding cuts, patients and their families face tough financial consequences. Private-duty nursing, physical therapy sessions outside of insurance and daily skilled nursing visits can quickly drain savings accounts.
There’s more to consider too, such as more emergency room visits or nursing home placement, both of which carry substantial costs.
Criminal fraud threatens benefits
Stabenow identifies the culprit behind these cuts: massive fraud schemes, particularly in Los Angeles. Criminals submit fake Medicare claims using “ghost patients” and shell companies, then launder billions in stolen taxpayer dollars.
According to CMS officials, these criminals exploit outdated billing systems while preying on vulnerable seniors.
This fraud directly impacts legitimate patients. When criminals drain Medicare’s coffers, less money remains for actual care. The proposed cuts attempt to recoup these losses, but they’re hitting honest providers and patients instead of the fraudsters.
The Department of Justice and Immigration and Customs Enforcement have launched investigations, even creating a new Fraud War Room. But while authorities chase criminals, regular Americans wonder how they’ll afford care if these cuts materialize.
Your financial protection plan starts today
Some Medicare beneficiaries aren’t waiting for Washington to solve this crisis. Here’s what to do before potential home health cuts:
Audit your Medicare coverage. Original Medicare covers home health services, but Medicare Advantage plans vary significantly. If you have an Advantage plan, contact your provider to understand your specific home health benefits and any changes coming in 2026.
Investigate supplemental insurance options. Medigap policies can potentially help fill coverage gaps if Original Medicare reduces home health benefits. But open enrollment for Medigap has strict timelines. Within six months of enrolling in Medicare Part B, you have guaranteed issue rights, which means insurers can’t deny coverage or charge extra for pre-existing conditions.
Strengthen your medical emergency fund. While financial advisors typically recommend three to six months of expenses in emergency savings, Medicare beneficiaries facing benefit cuts should consider more. An additional designated fund for medical expenses could prevent desperate raids on retirement accounts if coverage shrinks.
Create and maintain care documents. Keep detailed records of any home health services you receive. If benefits face cuts, having proof of medical necessity strengthens appeals or demonstrates continued service needs to private insurers.
Amplify your voice in the debate. Over 10,000 Americans have already submitted public comments to CMS about these proposed cuts. Contact your congressional representatives. They need to hear constituent stories about real-world impacts. Stabenow advocates for pushing lawmakers to “Fight Fraud First” rather than slashing legitimate services.
Map local health care resources. Many communities offer aging-in-place programs, senior centers with health services, or nonprofits providing reduced-cost care. Establishing connections with these resources now creates a safety net if Medicare coverage diminishes.
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